Objective Uncertainty

Objective Uncertainty

Objective Uncertainty is usually used when there is a dispute over claims, specifically with respect to the promise of surrender of an invalid claim or promise of forbearance to assert an invalid claim as constituting legal detriment to the claimant, and if bargained-for, as constituting consideration for a legally binding agreement. Under modern Contract Law, either good faith or objective uncertainty as to the validity of the claim is sufficient for the purpose of constituting. In simple English, it means, either the claimant has to assert the claim in good faith or a reasonable person could believe that the claim is well founded.

So, an objective uncertainty as to the validity of a claim means that a reasonable person could believe that the claim is well founded.


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